Natural justice in assessment proceedings requires fair consideration of a request for accommodation before finalising the order.

An assessment order was found vulnerable where the authority did not deal with the taxpayer's request for accommodation to collect and collate material in response to a show cause notice. The omission denied a fair opportunity before completion of assessment and breached principles of natural justice. The order was set aside, with liberty to the Assessing Officer to pass a fresh order in accordance with law. Consequential demand and penalty notices were rendered ineffective.

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Issues: Whether the assessment order passed without dealing with the request for accommodation was vitiated for breach of natural justice and liable to be set aside.

Analysis: The petitioner sought time to gather and collate material in response to the show cause notice. The assessment order was passed without considering that request or informing the petitioner whether the request had been accepted. The non-consideration of the request resulted in denial of a fair opportunity before completion of assessment.

Conclusion: The assessment order was set aside for violation of principles of natural justice, with liberty to the Assessing Officer to pass a fresh order in accordance with law. Consequential demand and penalty notices were rendered ineffective.

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